Rajes Kumar, J. - (1.) In the present writ petition, petitioner seeks the following relief: "(i) issue a writ, order or direction in the nature of certiorari quashing the impugned notice dated 9.12.1998 under Section 148, of the Act for the assessment year 1995-96 issued by the respondent (Annexure-3 to the writ petition). (ii) issue any other suitable writ, order or direction in favour of the petitioner as this Hon'ble Court may deem fit and proper in the circumstances of the case; (iii) award costs of this petition to the petitioner."
(2.) Brief stated facts giving rise to the present writ petition are that the petitioner is engaged in the business of manufacture and sales of pan masala including Wah Gutkha in the name of Ashok Enterprises. The petitioner business and residential premises were searched by the income-tax authorities. At the same time the business premises of Rajeev Bansal, Proprietor of M/s S.B. Agencies, Nayaganj, Kanpur was also searched, who is alleged to be a bulk purchaser of Wah Gutkha of the petitioner. It appears that certain books of accounts and documents have been seized. Perusal of the assessment order dated 13.03.1997 passed under Section 143 (3) of the Income-tax Act (hereinafter referred to as "Act") for the assessment year 1995-96 shows that on the basis of the seized sale bill book nos.SB-23, SB-49, SB-54, Sb-55, SB-56, Sb-57, SB-58, and SB-100 and statement of Rajeev Bansal undisclosed turn over was estimated at Rs. 49,14,445/- and extra net profit at Rs. 9,74,334/- was added in the assessment of the petitioner. Petitioner filed appeal against the assessment order, which was allowed and the said addition of Rs. 9,74,334/- was deleted vide order dated 06.03.1998. Admittedly, against the order of the first appellate authority, appeal filed by the revenue is pending before the Tribunal. In the meantime assessing authority issued the impugned notice under Section 148 of the Act on 09.12.1998 and on the demand by the petitioner reasons recorded for the reopening of the assessment and for the issue of the notice under Section 148 of the Act have been supplied to the petitioner, which is annexure No. 4 to the writ petition, which reproduced as follows: "In this case assessment Under Section 143 (3) was completed on 13.3.1997. During the course of verification of books of accounts seized in the case of Shri Rajiv Bansal, Prop. S.R. Agencies, it was noticed that Shri Rajiv Bansal had made unaccounted sales to the tune of Rs. 93,99,100/-. In the assessment order dated 30.3.1998 in the case of Shri Rajiv Bansal an addition of Rs. 10,80,896/- has been made on the basis of seized material Annexure SB-'103, SB-104 and SB-105, holding that Shri Rajiv Bansal has made unaccounted sales of Rs. 93,99,100/- of WAH GUTKHA. It has further been held that Shri Rajiv Bansal was making purchase of WAH GUTKHA from Shri Dinesh Chand Jain only since he is dealing exclusively in Wah Gutkha. It is further noticed that as per letter dt. 20.3.1998 Shri Rajiv Bansal has stated the entire purchases whether relating to accounted for or unaccounted sales (including zero errors/irregularities) were made from M/s Ashoka Agencies who were the manufacturer of Wah brand plain and tobacco mixed pan masala. In view of this, I have reason to believe that Shri Dinesh Chand Jain, pro. M/s Ashoka Agencies has failed to disclose in his return of income filed on 31.10.95, the sales worth Rs. 93,99,100/- made to Shri Rajiv Bansal as admitted by him and as consequence income chargeable to tax has escaped assessment for the assessment year 1995-96 in the case of Shri Dinesh Chand Jain. Issue notice Under Section 148 of the I.T. Act, 1961."
(3.) Heard Sri S.D. Singh, learned counsel for the petitioner and Sri A.N. Mahajan, learned Standing Counsel appearing for the Revenue.;